Why should companies invest in car sharing apps?
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Many of you are probably wondering why companies should consider investing in car sharing apps. We know very well that this is one of the more interesting business directions. The idea of sharing things like cars and even real estate is just developing and this is just the beginning of their journey. We’ll point out a few arguments that make a strong case for investing in car sharing apps – whether as standalone products or as part of a single brand’s broader business strategy!
What’s important about car sharing apps is that with just a few clicks, confirmation of our driving credentials for certain vehicles (distinguishing between cars, trucks, special vehicles – this is handled differently in each country), and payment details, we can quickly rent a means of transportation. By accepting the terms and conditions of the service provider, we agree to the predefined rules for such rentals (variable or fixed deposit, rules for returning the vehicle in a certain condition, fuel leveling and several others). For the user, this is a very attractive form of rental – usually the entrepreneurs coming out to the mobile application market make sure that their brands are associated with not only great convenience – but also attractive prices. There is also a not inconsiderable market of apps where you can make your private vehicle available for rental. Let’s say – we commute to work by bus, but we have a car which we use mainly on weekends – to visit family out of town. Then we can make it available at certain times, on certain terms and for a certain amount. If there are some people willing to accept our offer, they will be able to rent a car from us. The advantage for us is that our private property, whose value decreases quickly, can work for us and amortize the loss in a beneficial way. While we are not really using our car – it can be useful for someone else and by the way a little bit save the environment (in general) of producing the vehicle in terms of kilometers driven.
However, in this text we will focus on why companies should invest in car sharing apps. In addition, we will not describe here too extensively the case of other vehicles such as bicycles / electric bikes / electric scooters and many others. Their certain features – which is obvious – are common. However, it should be remembered that each case is slightly different and requires us to think a little differently and take into account slightly different factors. Among other things, these are socio-economic considerations. Currently, more and more households, mainly in highly urbanized areas – decide to live without their own car. This is due to the rising prices of vehicles, as well as the increasing offer of public transport. What’s more, also the non-stop developing applications, in which it is possible to rent various means of transport for a short period of time / for a small number of kilometers, causes that mainly younger people do not see the sense in necessarily owning some goods. They prefer to have them at their disposal when needed – for less money.
Due to the SARS-CoV-2 coronavirus, in 2020, the car sharing apps market scored a revenue decline from $9.61 billion to $7.36 billion globally. This is completely understandable: back then, we had to stay indoors for a very long time due to the risk of spreading the dangerous pathogen. However, as you can see already in 2021 – as soon as the pandemic restrictions began to loosen, the market for car sharing apps began to revive: revenue worldwide was already $11.21 billion. Such exponential growth is the result of the correction wrought by the fact that people were extremely bored with sitting at home and began to notice that there were other options for using cars. Analysts are forecasting revenues of $12.95 billion in 2022 and $14.04 billion in 2023. The market will saturate year after year and we can see a slight slowdown in the revenue growth rate here. By 2026, they are expected to be $16.52 billion annually – an extremely favorable result. The economic aspect is still something that speaks positively for you to consider investing in a car sharing app by automotive software development. Those billions of dollars may include the revenue of just your company. At this point, the decision is only up to you if you want to be part of it. Concise Software – having worked with companies in the automotive industry for years can make it clear – it is definitely worth taking an interest in car sharing apps from a business perspective! Nowadays, well-created, user-friendly and well-functioning products are brickbats. Many customers asking us if it is still worth investing in such solutions receive the same answer all the time – it is invariably worth it, if we can only prove that we are clearly better than our competitors. There are plenty of them!
Why is investing in a car sharing app a good idea?
In addition to the economic factor, the environmental aspect is worth noting. Car sharing apps reduce the personal carbon footprint of every person who uses them. It’s a very good idea, mindful of the health of the environment – especially since there are far too many cars in use today – that could be put to better use. While some are on the road all the time – others are not being used because they are sitting idle. Any company that provides a car sharing system is helping to keep our planet in good shape.
Car sharing apps allow you to use your car in a more conscious way
Instead of engaging cabs for small routes, you can rent a car for a longer period of time. This is more relevant to car sharing apps when you rent someone else’s car as part of the “idea of sharing”. Cabs really generate a lot of exhaust fumes, which are not indifferent to our planet and to the people themselves. PM10 and PM 2.5 particles are one of the most common causes of diseases like chronic obstructive pulmonary disease, asthma, allergies, cancer and many, many more. This is even more pronounced in more urbanized, smog-prone cities. Eliminating smog now would spare many people who suffer from these difficult to treat diseases.
Other advantages of investing in car sharing apps
Any business that invests in car sharing apps is therefore a business that contributes to the health of people, animals, and the entire ecosystem on our planet. But these are not the only benefits for which you should invest in car sharing apps! Many businesses that operate in the automotive industry can take advantage of this potential: all you need is a good idea and the desire to solve a specific problem. It will also be important to create some things “better”, taking into account the needs of users.
Socio-economic changes are conducive to investing in car sharing applications
As we mentioned, many households – especially in areas heavily saturated with passenger vehicles, do not think about their own car. This is influenced by electromobility in the broadest sense: among other things, also the possibility of cheaply purchasing such personal vehicles as scooters and electric bicycles. City dwellers who rarely go out of town usually do not want to maintain an unnecessary car and thus – to strain their business. They prefer to spend the money they save on other things – such as real estate (although this is also changing) or on services that are affordable in terms of a monthly budget.
However, there are times when we need a car. For example, if we are organizing a move, instead of paying a company to transport our belongings, we can use a rental car. Also, when you want to drive a car out of town, it can be much cheaper and more beneficial than borrowing a car in an unknown condition from a friend. When something breaks down, we do not have the security of a replacement car. What’s more, many car rental companies offer travel insurance and many other benefits. The changes in the market are causing more and more people to turn to renting a car – which is getting cheaper and more beneficial.
Investing in car sharing apps is a great way to increase the attractiveness of your business
Many companies already in the car business are asking themselves: do we want to invest in a car sharing app? The answer should be: of course! Many businesses in this sector already have services related to cars – for example, insurance, repairs and much, much more. Adding car sharing services to your portfolio is a great way to attract more customers. Those people who use our car sharing service may be more willing to try out other things that we have to offer. Concise Software – a long time partner in developing applications for car companies, having vast experience in this field knows very well about what business factors determine that a particular service is chosen by customers in the market. Many people pay attention to whether a particular company also provides other services and whether they have previously used other things of a particular brand. Trust is a huge value in business and this also applies to our customers who pay strong attention to such things.
And if you already have car sharing services – making them more accessible on your app is a great way to expand your customer base! The possibilities of technology today are almost endless – your customers will be really happy to know that they can make reservations in a convenient program for iOS or Android phones. It will be a huge convenience for them – and for you, too! If the car breaks down or anything goes wrong with the reservation, instead of calling you – the user will report the problem inside the application. It is the easiest way to do it: Your customers will definitely appreciate it!
Car sharing apps – so why is it worth it?
Customers love them, and the market will grow in the years to come. Aren’t these reasons enough? For some people, other arguments are needed and we have them at Concise Software! It is worth remembering that companies investing in car sharing are seen as those who care a lot about our natural environment. This in turn only means image gains for the company.
But if you need even more reasons – take a look at our experience in automotive software development services. Our specialists will tell you more about car sharing apps, which can be a variation for your business or an amazing shot in the bull’s eye for a start-up. Contact us today – we’ll tell you more about how you can benefit from a car sharing app!
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